IShares Edge MSCI USA Value Factor ETF VLUE carves an edge through its sector-relative approach to stock selection. This approach improves comparability, giving the fund cleaner exposure to stocks that are truly cheap relative to their peers. It also mitigates persistent sector biases, which most value indexes have and the market historically hasn't rewarded. While the fund also takes more risk than the Russell 1000 Value Index, it should provide better risk-adjusted performance over the long term. It warrants an upgrade to a Morningstar Analyst Rating of Silver from Bronze.
Will VLUE outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VLUE’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VLUE management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VLUE’s parent organization’s priorities and whether they’re in line with investors’ interests.